The True Unemployment Rate is Hard to Swallow

We cringe when we hear that the national unemployment rate is now 8.5 percent, according to U.S. Department of Labor statistics.

Millions are unable to find jobs after mass layoffs and more join the jobless ranks each week.

We have to think back to 1983 to remember a time when so many people were out of work.

As bad as it seems, we may not even be hearing the whole story, according to a startling report by MSN Money.

The Part-Time Poor

There are millions of Americans who are working part-time and making far less income than normal because they can't find full-time employment.

Many more have given up on their job searches after coming up empty week after week.

Those who are self-employed and have seen their livelihoods vanish are also feeling the squeeze.

These people are not included in the current unemployment statistics.

If they were, the national unemployment rate would total a mind-boggling 15.6 percent.

Poor Job Market + High Debt = Bad News

Unemployment is now at its highest level since tracking began after World War II.

The job market is unbelievably tight.

Those who found work after a layoff are often receiving less benefits and a fraction of the pay of their former jobs.

Others take temporary contracts without benefits just to make ends meet.

For some, going back to school to learn a new skill seems to be the only way, but education often comes with a debt attached.

Americans are already burdened with huge debts.

The recession has caused many people to rely on credit for everyday necessities—and our outstanding balances have grown.

Millions of families have either walked away or been evicted from their homes due to foreclosure.

Economists do not predict a swift drop in the unemployment rate, even if recent stock market activity signals economic recovery is on the way. These experts predict the jobless rate will remain high for some time to come.

For some, bankruptcy can provide a fresh start.

Bankruptcy Becoming an Option for Many

For the unemployed, as time moves forward, bankruptcy becomes an increasingly attractive option.